We know that it can sometimes be difficult to manage debt effectively and keep our financial matters in order. With all the paper clutter that daily life produces, it is no wonder we have a hard time staying organized and exercising good debt management skills. It is so easy to get bogged down with endless bills and mounds of paper, and not managing your debt properly can lead to other money problems down the line–missing a payment here or a bill there does not cast a favorable impression on creditors. As credit counseling services advise, the first rule of thumb for maintaining a successful financial situation is to get organized. Using online bill pay can help you pay down debt, manage your money, save money and reduce stress.

There are two basic categories of online bill payment methods – those that are offered through a banking institution, and those that are offered through a service provider, such as a phone credit card company. Personal finance software programs such as Quicken or Microsoft Money have been created to assist consumers manage their debt.

Online bill pay is generally designed to be quick and easy to use. Most major banking institutions and businesses now offer this service free of charge. You can either choose to manually enter your payments each month, or set up for automatic withdrawal from your account. With automatic withdrawal, you can set up your payments in advance of their due date, and won’t have to worry about giving manual instruction to make your payment each month. The creditor will transfer funds directly from your bank and apply those funds to your account without any action required on your part.

Easy

You can save time by using the online bill pay feature. Rather than writing out checks, licking stamps, and filing piles of papers, you can set up an online account that will eliminate all of those steps. Management of your debt will become so much easier – and faster.

If you ever need to review past bills, you won’t have to spend time searching for them since all of your account information is in one centralized location.

Cost Saving

Save on the cost of postage stamps – they can really add up! Since the average household receives 15 bills per month, that’s about $70 a year in postage costs alone.

Avoid late charges that can be incurred when a payment is received after its due date. Missed payments could result in any of the following:

Higher interest rates

Late fees and over limit fees

If the payment is already past due, your account may go to a collection status.

Convenient

Want a more convenient debt management solution? Create an automatic online bill pay account that will allow you to set up recurring payments to be withdrawn from your account on a regular basis. You can reduce the chance of late or lost payments, and save time in the process.

If you find that one of your bills is due the next day, online bill pay is the best way to ensure that your payment will be posted on-time.

We hope that you can put these suggestions to use and can use the convenience of online bill pay when making your own payments. If you still need help with your debt, consider credit counseling to find out if a debt management plan is right for you.